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Mettler-Toledo International Inc (NYSE:MTD)
Shiller P/E Ratio
32.40 (As of Today)

As of today, Mettler-Toledo International Inc's current share price is $261.04. Mettler-Toledo International Inc's E10 for the quarter that ended in Mar. 2014 was $8.06. Mettler-Toledo International Inc's Shiller P/E Ratio for today is 32.40.

MTD' s 10-Year Shiller P/E Ratio Range
Min: 12.21   Max: 38.64
Current: 32.4

12.21
38.64

During the past 13 years, Mettler-Toledo International Inc's highest Shiller P/E Ratio was 38.64. The lowest was 12.21. And the median was 26.61.

MTD's Shiller P/E Ratiois ranked higher than
87% of the 320 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 9999.00 vs. MTD: 32.40 )

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Mettler-Toledo International Inc's adjusted earnings per share data for the three months ended in Mar. 2014 was $1.957. Since most companies do not have as long as 10 years history, here we use 6 years to calculate. Add all the adjusted EPS for the past 6 years together and divide 6 will get our E10, which is $8.06 for the trailing six years ended in Mar. 2014.


Definition

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Mettler-Toledo International Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=261.04/8.06
=32.39

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Mettler-Toledo International Inc's E10 for the fiscal year that ended in Dec13 is calculated as:

For example, Mettler-Toledo International Inc's adjusted earnings per share data for the three months ended in Mar. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2014*CPI of Current
=1.93/236.293*239.556
=1.957

Since most companies do not have as long as 10 years history, here we use 6 years to calculate:

Current CPI = 239.556.

Mettler-Toledo International Inc Quarterly Data

201203201206201209201212201303201306201309201312201403201406
per share eps 1.6201.9302.2803.3461.6902.2402.4303.6231.9302.490
CPI 229.392229.478231.407229.601232.773233.504234.149233.049236.293238.728
Adj_EPS 1.6922.0152.3603.4911.7392.2982.4863.7241.9572.499
200909200912201003201006201009201012201103201106201109201112
per share eps 1.2102.0091.1001.4901.8202.4061.4101.8202.0902.911
CPI 215.969215.949217.631217.965218.439219.179223.467225.722226.889225.672
Adj_EPS 1.3422.2291.2111.6381.9962.6301.5121.9322.2073.090
200809200812200903200906
per share eps 1.5201.8421.0000.810
CPI 218.783210.228212.709215.693
Adj_EPS 1.6642.0991.1260.900

Add all the adjusted EPS together and divide 6 will get our E10.


Explanation

Compared with the regular P/E ratio, which works poorly for cyclical businesses, the Shiller P/E smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller P/E should give similar results to regular P/E.

Compared with the P/S ratio, the Shiller P/E makes the comparison between different industries more meaningful.


Be Aware

The Shiller P/E assumes that over the long term, businesses and profitability revert to their means. If a company’s business model does not work in the future compared with the past, the Shiller P/E and P/S ratio will give false valuations.


Related Terms

P/E Ratio, P/B Ratio, P/S Ratio, Price-to-Free-Cash-Flow ratio, E10


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Mettler-Toledo International Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ShillerPE 25.9524.7030.1835.6718.2024.8030.2824.5327.9031.19

Mettler-Toledo International Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ShillerPE 29.3324.1225.7827.9029.9027.5431.7431.1929.250.00
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